Angry China Puts Economic Squeeze on South Korea: QuickTake Q&A

China is fuming about the U.S. deploying a missile defense system in South Korea -- and Korean companies are feeling the impact. While the U.S. says the system, known as Thaad, is meant to defend against attack from North Korea, the Chinese see it as a threat. Now China is curbing travel to South Korea and targeting Korean companies that operate in the mainland.

Until recently, yes. Chinese President Xi Jinping boasted in 2014 the two countries were “shoulder-to-shoulder good neighbors and good partners.” A free-trade agreement went into effect in 2015, with China agreeing to end $54.5 billion of duties on imports from South Korea. China is South Korea’s largest trading partner, buying a quarter of the country’s exports.